Commerce Department pitches for five-year extension of RoDTEP scheme for exporters
The Commerce Department is negotiating a five‑year extension of the RoDTEP scheme, which currently expires on September 30, after a short six‑month extension in April 2026. The move also includes a review of the Export Promotion Mission’s rules to address exporter feedback.
- ✓The Commerce Department is negotiating a five‑year extension of the RoDTEP scheme, which currently expires on September 30, after a short six‑month extension in April 2026.
- ✓RoDTEP refunds embedded taxes and duties at rates ranging from 0.3 % to 3.9 % of export value, linked to the input taxes paid by exporters.
- ✓The Union Budget 2026‑27 allocated ₹10,000 crore to the scheme, down from ₹18,232 crore in the previous fiscal year.
The Commerce Department has entered discussions with the Department of Expenditure to secure a five‑year continuation of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, officials said. The proposal comes as the current extension, granted on April 1 2026 for six months, is set to lapse at the end of September, prompting the ministry to also consider adjustments to the ₹25,060‑crore Export Promotion Mission (EPM) based on stakeholder input.
The EPM, approved in November last year for six financial years, comprises two sub‑schemes: Niryat Protsahan with an outlay of ₹10,401 crore and Niryat Disha with ₹14,659 crore. RoDTEP refunds embedded taxes and duties at rates ranging from 0.3 % to 3.9 % of export value, linked to the input taxes paid by exporters. The Union Budget 2026‑27 allocated ₹10,000 crore to the scheme, down from ₹18,232 crore in the previous fiscal year.
RoDTEP is a key support mechanism for MSME exporters, offering reimbursement for taxes not otherwise recovered. Exporters have been urging a longer‑term extension amid the West Asia crisis and global tariff volatility, arguing that a five‑year horizon would enable better investment planning, pricing stability, and sustained cost competitiveness in overseas markets.
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| Issuing Authority | The Hindu BusinessLine Economy |
|---|---|
| Topic Category | BUSINESS |
| Jurisdiction | All India / National |
| Publication Date | 16 September 2026 |